Commission Continues to Improve Information Access in Cyberspace

SUMMER 2009

The Commission’s Web site, www.arec.alabama.gov, hasbeen redesigned to be more user-friendly for licensees andconsumers. The site now features more advanced naviga-

tion and, as it is developed, more interactive features will beadded.

Check out the site and tell us what you think. Go to the “Con-tact Us” link and click on “Comments” under Miscellaneous onthe left side of the page. Tell us if there is something you had dif-ficulty finding on the site or if there was information that youneeded that was not avail-able on the site. If you justhave general comments,we appreciate those, too.

The Commission also has a presence on the social media siteFacebook. This will be another place for licensees and consumersto access information and interact. We will continue to add infor-mation to our page in the coming weeks. To join us on Facebook:

■ Go to the Commission Web site www.arec.alabama.gov

■ Under News & Events (scrolling section on Home page), goto the bottom and click on “Become a Fan of the AlabamaReal Estate Commission Official Facebook Page Today!” Thiswill take you to the Commission’s Facebook page.

■ If you have not signed up on Facebook, click the Sign Up button at the top of the page and follow the steps to set up your free account. You must have a Facebook account toaccess the Commission’s page.

■ If you already have a Facebook account, login and click on the “Become a Fan” link.

If you have questions or need assistance getting connected to the Commission through our Web site or on Facebook, contact us. ■

In an effort to provide licensees and consumers with the most up-to-date information and quick access to information,the Alabama Real Estate Commission is continuing to improve our online presence.

In This IssueBRIEFLY LEGAL:Lawsuit and Criminal Case Reporting Requirements . . . . . . . . 2Company Names in Advertising: What's In a Name? . . . . . . . .3

LICENSING TIDBITS:Returning Licenses to the Commission . . . . . . . . . . . . . . . . . . 4Send Appropriate Form or Letter with License or Fee . . . . . . . 4Company Address or Name Changes . . . . . . . . . . . . . . . . . . . 4

TECHNICALLY SPEAKING:“You've Got Mail”…Don’t You? . . . . . . . . . . . . . . . . . . . . . . . . 5

EDUCATION CORNER:We Strive for Quality Education . . . . . . . . . . . . . . . . . . . . . . . . 6Continuing Education for License Renewals — Why Wait? . . 6

Disciplinary Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Other Administrative Actions . . . . . . . . . . . . . . . . . . . . . . . . . . 7

22nd Edition of License Law Book Available Now . . . . . . . . . . 8

Read these closely. You will see thatthese sections concern civil court casesand criminal cases. You do not need a

law degree to understand this, so I am notgoing to explain the basics. I am going tomake some important points. If you havequestions as these things come up, just callour office.

■ You should report any civil case whereany licensee is named as a defendant,including the company. This includeswhen you are dealing in your own person-ally owned property.

Your reporting must include a copy of thepaperwork served upon you. You should

write a cover letter telling us forwhat licensee or licensees

the reporting isbeing done. Do

Here are the pertinent portions of the statutes I’ll be examining:

■ Section 34-27-31. Recovery Fund created; fees paid to fund; injured party’s recovery from fund; procedures, appeals, etc.; licensee to reportany legal action taken against him.

(j) Each licensee shall notify the commission within 10 days after notice tohim or her of the institution of any criminal prosecution against him or her,or of a civil summons and complaint against him or her, if the subject mat-ter of the civil complaint involves a real estate transaction or involves thegoodwill of an existing real estate business. The notification shall be in writ-ing by certified mail and shall include a copy of the summons and complaint.If a criminal charge is made, it shall include the specific charge made againstthe licensee together with a copy of any indictment or information allegingthe charges.

(k) Each licensee shall notify the commission in writing by certified mailwithin 10 days after he or she receives notice that any criminal verdict hasbeen rendered against him or her, or that a criminal action pending againsthim or her has been dismissed, or that a civil action in which he or she wasa defendant and which involved a real estate transaction or the goodwill ofa real estate business has resulted in a judgment or been dismissed. Thenotification shall be in writing and shall include a copy of the courtorder or other document giving the licensee notice.

■ Section 34-27-36. Disciplinary action — Generally.

(a) The commission or its staff may on its own, or on the verifiedcomplaint in writing of any person, investigate the actions andrecords of a licensee...The commission shall revoke or suspendthe license or impose a fine of not less than one hundred dollars($100) nor more than two thousand five hundred dollars($2,500), or both, or reprimand the licensee in each instance inwhich the licensee is found guilty of any of the following actsset out in this section...

(23)a. Having entered a plea of guilty or nolo contendere to,or having been found guilty of or convicted of a felony or acrime involving moral turpitude. b. Having a final moneyjudgment rendered against him or her which results froman act or omission occurring in the pursuit of his or her realestate business or involves the goodwill of an existing realestate business.

2 SUMMER 2009

BRIEFLY LEGALLawsuit and Criminal Case

Reporting RequirementsBy Charles R. Sowell, General Counsel

BRIEFLY LEGAL

SUMMER 2009 3

Company Names in Advertising:

WHAT’S INA NAME?

By Chris Booth, Assistant General Counsel

Iwon’t rehash Pat Anderson’s article from the Fall 2005Update dealing with DBA (Doing Business As) naming.Instead, this article deals with the use of companies’

licensed names in advertising. The law on this is pretty simple. Section 34-27-32(e) requires that a company application be made by the qualifying broker of the company. Under Section 34-27-36(a)(15) a licensee mustinclude the “name or trade name of the qualifying broker orcompany under whom the salesperson or associate broker is licensed...” The last bit of law on this issue is found in Section 34-27-36(a)(6): “Publishing or causing to bepublished any advertisement which deceives or which islikely to deceive the public, or which in any manner tendsto create a misleading impression...” Earlier variants ofthese current laws were interpreted in an Attorney General’sOpinion to require that all licensees must advertise underthe licensed company’s name.

All this is to say that it is very important to include thefull licensed name or full DBA name in all advertisements,but also because it is the law. After all, how will a consumerbe able to determine who they are dealing with if the full licensed name is not evident? This issue is further exacerbated in the case of franchise naming. I have beenable to find no licensed franchise named only RE/MAX,Century 21, or Coldwell Banker. All franchises like thesehave additional names which allow a consumer and Commission staff to differentiate between them.

The requirement that companies advertise under theirlicensed names applies to all advertisements, including Web sites (including Facebook and other social networkingsites), car signs, business cards, etc. The last bit of information may be the most important. The Commis-sions’ auditors will be including this as an element of their audits. ■

the same thing when the case has been concluded,enclosing a copy of the court’s action concluding thecase. Report the conclusion no matter how it is con-cluded. If the conclusion is a final judgment against youor your company that awards money damages to theplaintiff, then a formal complaint will be filed by ouroffice against you. Commissioners will decide whatpunishment is appropriate. If yours is also a recoveryfund case and the fund has to pay on account of thejudgment, then commissioners will almost certainlyrevoke your license.

■ In civil cases you can prevent the filing of a formalcomplaint by our office by satisfying the judgmentbefore it becomes final. As a general rule, in districtcourt a judgment is final 14 days after it is rendered and in circuit court a judgment is final 30 days after it is rendered. A plaintiff might agree to settle the caseeven at this point. If a settlement or full payment of the judgment is made, there will be no final judgment.Your attorney will see that the court’s records reflectsatisfaction of the judgment. This means your report ofthe conclusion of the case will be a settlement, not afinal money judgment. If the judgment becomes finaland you are appealing it, or your attorney has made apost-judgment motion, let us know that, too. You, how-ever, must report it.

■ In criminal cases there are several ways in whichyou might have charges instituted against you, butthere will always be an arrest at some point. We willconsider this as the time your 10 days begins to run toreport to us. You should report any arrest, except forsimple traffic violations. We, however, will only reallybe interested in felony charges of all kinds and misde-meanor charges involving moral turpitude. Do not wor-ry about the complicated definition of moral turpitude.The only misdemeanors involving moral turpitude aretheft of any kind, including shoplifting, and the writingof worthless checks. Your reporting must include acopy of the arrest warrant or indictment or other paper-work instituting the charges. You should write a coverletter explaining that you have been arrested. Do thesame thing when the case has been concluded, andenclose a copy of the court’s action concluding thecase. If you appeal the conviction, let us know that, too.If you either plead guilty or are found guilty, feloniesand moral turpitude misdemeanors will result in the filing of a formal complaint by our office after anyunsuccessful appeal is concluded. Commissioners willdecide what punishment is appropriate. ■

4 SUMMER 2009

LICENSING TIDBITSBy Patricia Anderson, Assistant Executive Director

LICENSING TIDBITS

The Commission is often asked under what circumstanceslicenses must be returned to the Commission. The answer

is only on two occasions as follows.

(1) When a licensee, including a company, goes inactive byaction of the qualifying broker or through a licensee’sown request regardless of whether the transaction occursthrough the online process or it is a mail-in request, the license must be returned to the Commission. Forexample, if a qualifying broker no longer chooses to holda salesperson or associate broker’s license, then the qualifying broker must return that person’s license to theCommission along with a statement that he or she wishes to terminate his or her status as qualifying broker. [Section 34-27-34(d) of the License Law]. Likewise, if a qualifying broker closes the company and wishes to place it on inactive status, all licensesincluding the company license must be returned.

However, when licenses are “forced inactive” or placedinactive by the Commission through operation of law, it is not necessary to return the license. For example, ifan active licensee does not take his or her continuingeducation but pays the renewal fee, then the license is“forced inactive” because the CE requirement was notmet on time. That person’s license would NOT have to bereturned to the Commission.

(2) When a licensee changes from a salesperson to a brokerthe salesperson’s license must be returned to the Commission prior to the issuance of the broker’s license.[Section 34-27-35(f)].

There is no statutory requirement to return license certificates for transfers such as change of company name or address, personal name change, or change of qualifyingbroker. This does not relieve the requirement to pay the $25 transfer fee per license to be changed. ■

Company Address and Name ChangesThe Licensing Division tells us thatthey are experiencing problemsbecause there is lack of under-standing that a company addressor company name change requiresthat all licenses in the company bechanged. That is because all thelicenses contain the company nameand address. So, that means that in addition to sending in the letterindicating the change, the cost is $25 per license to include the company license, qualifying brokers license, associate brokers,and salespersons licenses. This kind of transfer is not yetavailable online. ■

Send Appropriate Form or Letter with License or Fee

You would have to work here to believe how many licenses and/or checks comein the mail with no registration or renewal form, no letter, no instructions...nothing!It is particularly interesting when we receive a company check with no license, noform, and no correspondence at all. Often it is to renew someone’s license but thereis no renewal form and we’re sure you don’t want us to guess whose license weshould renew with it.

Sometimes the check is to pay a fine but there is no correspondence with itdenoting that. Staff has to spend time determining if the check is for Licensingor Legal or what you are sending it for. It is much like paying your credit cardbill by sending just a check in the envelope without an account number or por-tion of the bill you are to return with your payment. Always send a form or cor-respondence with your payment to insure proper credit of your payment.

Other times licenses come in the mail with no written request with them. Wecould assume the sender wants the license to be placed inactive, but that assump-tion is sometimes incorrect. Please include the appropriate form or a letter statingwhat is to be done when licenses are returned and/or fees are paid. Remember, allCommission forms are available on our Web site at www.arec.alabama.gov. If you have any questions or if you are unsure of the appropriate procedures to follow, please contact the Licensing Division. They will be happy to assist you. ■

Returning Licenses to the Commission

SUMMER 2009 5

TECHNICALLY SPEAKINGTECHNICALLY SPEAKING

“You’ve Got Mail”... Don’t You?By Steven Brown, IT Systems Technician, Sr.

In today’s “always-connected” society we have theentire world at our fingertips. Through Facebook,MySpace, Twitter, Blogspot, YouTube, and a host of

other various sites we can connect with almost everyonethrough cyberspace. However, one of the methods thatmost of us first used to connect with friends, family, andthe rest of the world by the Internet is still going strong.How many of us remember getting just a little excitedwhenever we heard, “You’ve got mail,” after waiting forwhat seemed like an eternity for our computers to dial-upto the Internet? Sadly, most of the time our hearts sankwhen the email we received wasn’t from our cousin thatwe haven’t heard from in ages but a spam email advertis-ing a new diet craze. Thankfully, those days are long goneand spam filters have greatly improved.

As you may or may not know, the Alabama Real EstateCommission also uses email to update our licensees oninformation that is pertinent to your license status, such asrenewal reminders. It’s important to us that you get thisinformation so please have a current email address on filewith the Commission.

Some of you may be asking, “What should I do if Idon’t have an email address?” The solution to that prob-lem is that there are many free Web-based email providersthat can suit your needs. The most popular services rightnow are:

• Yahoo Mail . . . . . . . . . . http://mail.yahoo.com• Hotmail . . . . . . . . . . . . . . . http://mail.live.com• Gmail (Google Mail) . http://mail.google.com• AOL Mail . . . . . . . . . . . . . . http://mail.aol.com

Each one of these providersallows you to create a free emailaccount that you can accessfrom any computer that has aconnection to the Internet.

No matter which provider you may choose the process isrelatively the same. Once youaccess one of the Web sites listed above you’ll be presented

with a link to “Create an account” or “Sign Up.” Clicking this link will take you to a Web page that willask for your name and allow you to select your emailaddress and password. Some popular email addressesare probably already taken (i.e.john.doe@yahoo.com)so if your first choice isn’t available don’t give up. Try something unique and you’ll get the email addressthat identifies you and fits your personality. Make sureto fill out all the required information on the page andclick “Submit” at the bottom. That’s it; you’re now the proud owner of your own brand new email address.Feel free to let all your friends and family membersknow your new address so they can add you to their contact lists.

Now that you have a new email address you canupdate your email address info with the Commission bygoing to www.arec.alabama.gov and clicking on“Online Services” and selecting “Start” under the section that lists Change Home Address, Telephone, and Email. This will take you to the AREC Login page. Enter your license number, the last four digits ofyour SSN, and your date of birth in the spaces providedand click “Login.” The next screen you’ll be presentedwith will allow you to update your contact information;type in your new email address, along with any othercontact information that may have changed; and typeyour name in the eSignature field. You’ll need to click“Next” then click “Logout” on the next page and you’re done. Your new email address is now on file with the Commission. ■

The Real Estate Commission began to make several changesin 2004 as part of a strong push to provide quality real estateeducation in the state of Alabama. Commissioners stood

before all instructors at the Annual Instructors Seminar held inAuburn in October of 2004 and told instructors the Commissionwould be taking steps to guarantee that a higher quality of realestate education is offered in the state. In an effort to reach thisgoal the following changes were made:

■ The content of all courses submitted for CE credit isreviewed by Education staff. The Commission must beaware of the information being taught to Alabama licenseesin order to achieve the mission of protecting the public.

■ Learning strategies are required to be submitted along witha detailed content outline and learning objectives for cours-es seeking CE approval. How a course is taught can be justas important as what is taught.

■ The opening of the training room in the Commissionbuilding in 2005 allowed for the provision of instructortraining throughout the year covering a variety of topicsincluding specific subject matter and presentation skills.

■ Two education auditors have been hired to make sureinstructors are teaching the course content submitted forapproval and teaching it in an effective manner.

■ Online evaluations are available for all courses except thesalesperson prelicense course which requires a paper evalu-ation. All licensees are strongly encouraged to take advan-tage of the online evaluation when checking CE credit onthe Commission Web site. The Commission wants to hearfrom licensees regarding their experiences while taking realestate courses both in the classroom and through distanceeducation.

All of these changes have helped increase the quality of courses and instruction offered in the state. These efforts haveresulted in the Commission receiving the award for Best OverallEducation Program of 2008 from the Association of Real EstateLicense Law Officials (ARELLO). The Commission continues to look for ways to improve education in an effort to protect the public and meet the needs of the customers and clients ofAlabama licensees. ■

Real estate continuing education is required for the renewalof all salesperson and broker licenses. This is nothing new, butit always helps to be reminded of important information.According to Section 34-27-35(j)(1) and Rule 790-X-1-.11 ofAlabama License Law, 15 hours of continuing educationcoursework must be completed for license renewal. The 15hours consist of the following:

■ Three (3) clock hours in Risk Management

■ Twelve (12) clock hours in Commission approved elec-tive courses

Check your continuing education credit in the Online Ser-vices section of the Commission’s Web site and see how manyhours you are lacking for license renewal. The Real EstateCourse Search on the Web site is available to help licenseesfind courses that are currently being offered. Why wait untilAugust and September of 2010 to take 15 hours of continuingeducation coursework? Beat the rush and eliminate unneces-sary stress by taking courses now. ■

Continuing Education for License Renewals —

WHY WAIT?

EDUCATION CORNEREDUCATION CORNERWe Strive for Quality Education

By Ryan Adair, Education Director

6 SUMMER 2009

SUMMER 2009 7

DISPOSITION

The below were found guilty for violationof Section 34-27-36(a)(16) by presentingto the Alabama Real Estate Commission,as payment for a fee or fine, a checkwhich was returned unpaid by the bankupon which it was drawn.

William J. DunnamLicense No. 000094391Temporary Salesperson; Tuscaloosa,AlabamaDate of Hearing: March 11, 2009Fined $250

Allison R. SandersLicense No. 000093236Salesperson; Birmingham, AlabamaDate of Hearing: March 11, 2009Fined $250

Greg UrbanskiLicense No. 000092467Salesperson; Mobile, AlabamaDate of Hearing: March 11, 2009Fined $250

James Wade GreenLicense No. 000068607Associate Broker; Pensacola, FloridaDate of Hearing: April 3, 2009Fined $250

DISPOSITION

The below were found guilty of violationof Rule 790-X-3-.01 through Section 34-27-36(a)(19) for failing to notify the Com-mission in writing within 30 days afterchanging their place of business as set outon their numbered license certificate.

Yvonne Summers SchramLicense No. 000071716Qualifying Broker; Madison, AlabamaDate of Hearing: March 11, 2009Fined $250

John D. FetzLicense No. 000086158Qualifying Broker; Atlanta, GeorgiaDate of Hearing: March 11, 2009Fined $250

DISPOSITIONThe below was found guilty of violatingSection 34-27-36(a)(23)a. by entering aplea of guilty to a felony offense.

Michael W. MadisonLicense No. 000082985Salesperson; Gulf Shores, AlabamaDate of Hearing: April 3, 2009Fined $500

DISPOSITION

The below surrendered their licenses foralleged license law violations in lieu of aformal complaint and hearing.

C. B. DementLicense No. 000004481Associate Broker; Fultondale, AlabamaDate of Hearing: February 11, 2009

Agnes Stergion-WillisLicense No. 000070905Salesperson; House Springs, MissouriDate of Hearing: March 11, 2009

Justin Anthony James GrayLicense No. 000075675Salesperson; Foley, AlabamaDate of Hearing: April 3, 2009

Verice Lennette Lucas-TyusLicense No. 000076019Temporary Salesperson; Mobile, AlabamaDate of Hearing: April 3, 2009 ■

DISCIPLINARY ACTIONS TAKENFebruary 2009 through April 2009

DISCIPLINARY ACTIONS TAKEN

OTHER ADMINISTRATIVE ACTIONS

DETERMINATION OF LICENSURE

Approved......................................................................................................... 14

Denied............................................................................................................... 4

DETERMINATION OF ELIGIBILITY

Approved........................................................................................................... 2

Denied............................................................................................................... 6

COMPLAINTS AND INQUIRIES HANDLED BY LEGAL AND INVESTIGATIVE STAFF

From Licensees.......................................................................................... 1,076

From Public................................................................................................... 474

Anonymous..................................................................................................... 19

22nd Edition of License Law Book Available NowThe new License Law Book(22nd Edition Revised 2009) is now available from the Alabama Center for Real Estate (ACRE). The new edition contains all rules and regulations that were effective as of April 30, 2009.

Every qualifying broker will receive one complimentary copy. Qualifying brokers are strongly urged to keep a copy of the License Law handy and regularly refer to it in sales and training meetings. Alsoencourage the salespeople andbrokers licensed with yourcompany to order their owncopy. Additional copies are available for $10, plus shipping and handling. You can download an order form at www.arec.alabama.govunder Quick Links.

Presort StandardU.S. Postage

PAIDMontgomery, AL

Permit 2861201 Carmichael Way • Montgomery, AL 36106

OUR MISSIONTo serve the public through the licensingand regulating of Real Estate licensees.

OUR VISIONTo insure public confidence in

real estate transactions.

OUR VALUESExcellence in stewardship, service,

innovation, and integrity.

COMMISSIONERSJewel D. Buford, Tuscaloosa

Steve Cawthon, Huntsville

Robert S. Hewes, Dothan

Sheila S. Hodges, Gulf Shores

Clifton Miller, Huntsville

Janet R. Morris, Montgomery

Dorothy P. Riggins-Allen, Montgomery

Bill Watts, Birmingham

Nancy Wright, Cullman

D. Philip Lasater, Executive Director

Patricia Anderson, Asst. Executive Director

Vernita Oliver-Lane, Editor

Lori Moneyham, Associate Editor

The Alabama Real Estate CommissionUPDATE is published for the benefit of the

Alabama Real Estate Industry by the Alabama Real Estate Commission.

Phone: 334.242.5544

Fax: 334.270.9118

www.arec.alabama.govarec@arec.alabama.gov

COMMISSION MEETINGS OPEN TO THE PUBLIC

All Commission meetings are open to thepublic and that includes real estate

licensees. Commissioners welcome andencourage attendance and observation by

any licensee in any location. Locations, dates, and times can be found

on the Commission’s Web site atwww.arec.alabama.gov.

LICENSE RENEWAL DEADLINESeptember 30, 2009

is the deadline for all licensees who have not yet renewed their licenses.

LICENSE LAW

22nd EDITIONREVISED 2009

INCLUDINGRULES AND REGULATIONS